Premier Announces Additional Cash-Flowing Royalty Purchase Agreement by its Subsidiary Premier Royalty Corp.

Premier Announces Additional Cash-Flowing Royalty Purchase Agreement by its 
Subsidiary Premier Royalty Corp. 
Engages Financial Advisor 
Shares Issued: 137,431,855 
THUNDER BAY, ON, May 24, 2012 /CNW/ - Premier Gold Mines Limited (TSX: PG) 
("Premier") is pleased to announce the signing of a Definitive Purchase 
Agreement ("the Agreement") regarding the sale by Golden Arrow Resources 
Corporation ("Golden Arrow") and purchase by Premier's wholly-owned 
subsidiary, Premier Royalty Corporation ("Premier Royalty"), of Golden Arrow's 
1% NSR on Yamana Gold's Gualcamayo Gold mine (the "Royalty"). Pursuant to the 
terms of the Agreement, Premier Royalty has agreed to purchase 100% of the 
shares of Golden Arrow's wholly-owned subsidiary which indirectly owns the 
Royalty for cash consideration of $16,500,000 and warrants to purchase an 
aggregate of up to 1 million shares of Premier Royalty at an exercise price 
equal to 120% of the price of Premier Royalty's shares in connection with an 
initial public offering or similar going public transaction. The warrants will 
be exercisable for a period of 24 months from the closing date of the Royalty 
acquisition. Golden Arrow will have the right, on 30 days' prior written 
notice, to require Premier Royalty to purchase for cancellation all 
outstanding warrants for a price of $1.25 per warrant at any time prior to 
their expiry. 
The Closing Date of the transaction is expected to occur in the third quarter 
of 2012 and is subject to closing conditions typical for a transaction of this 
nature, the receipt of all necessary regulatory approvals, including the 
approval of the TSX Venture Exchange and approval by the shareholders of 
Golden Arrow. Golden Arrow will hold a special meeting in July, 2012 for its 
shareholders to vote on the sale of the Royalty. 
As in the previously announced acquisition of royalties from Aberdeen 
International Inc., Premier intends to provide a bridge loan to Premier 
Royalty, if required, for the Royalty purchase from Golden Arrow. The bridge 
loan will be repaid by Premier Royalty with interest following a "go public" 
event. Consistent with Premier's strategy to expand its portfolio of royalty 
assets and maximize value for shareholders, Premier has engaged CIBC World 
Markets Inc. as its financial advisor to assist in considering acquisition and 
financing alternatives in relation to the Premier Royalty portfolio going 
forward. Premier is planning to take Premier Royalty public during 2012. 
The Gualcamayo mine is an open pit, heap leach gold mining operation with 
three substantial zones of gold mineralization, located in the northern San 
Juan province of Argentina, which hosts total proven & probable mineral 
reserves of 2.2 million oz. and total measured & indicated mineral resources 
of 1.1 million oz. as at December 31, 2011. Gualcamayo has consistently 
improved its production versus guidance and is on-track to meet or exceed 
guidance since 2011. According to Yamana's public disclosure, the decision was 
made in 2010 to develop the underground QDD Lower West deposit, located below 
the main open pit, which is expected to increase annual production to over 
200,000 ounces per year beginning in 2014. 
Abraham Drost, Chairman of Premier Royalty stated that "We are very pleased to 
add another high quality cash-flowing royalty on a relatively new producing 
gold mine operated by a proven operator, to our portfolio of royalty assets. 
The Company continues to assess additional royalty acquisitions and other 
corporate development opportunities as part of an ongoing effort to optimize 
shareholder value. The engagement of CIBC World Markets Inc. as financial 
advisor will be of considerable assistance in this regard". 
Information in this press release describing the Gualcamayo Gold Mine relies 
upon public disclosure provided by Yamana Gold Inc. and has been reviewed by 
Mr. Stephen McGibbon, P. Geo, who is a Qualified Person within the meaning of 
National Instrument 43-101. For more information on the Gualcamayo Gold 
Mine, please refer to the "Technical Report for Gualcamayo Project, San Juan - 
Argentina" dated March 25, 2011 which can be found on Yamana Gold's profile on 
www.sedar.com. 
About Premier Gold Mines Limited and Premier Royalty Corporation 
Premier Royalty Corporation is a wholly-owned subsidiary of Premier Gold Mines 
Limited, one of North America's leading exploration and development companies 
with a high-quality pipeline of projects focused in proven, safe and 
accessible mining jurisdictions in Canada and the United States. Premier's 
portfolio includes significant assets in world class gold mining districts 
such as Red Lake, Musselwhite and Geraldton in Ontario and the Carlin Trend in 
Nevada. Premier believes that consolidating existing royalties owned by 
Premier Gold combined with acquisition of other high quality cash flowing 
royalty assets into Premier Royalty Corporation can form the basis of a 
transaction that is value accretive to Premier shareholders. 
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release 
includes certain information that may constitute "forward-looking information" 
under applicable Canadian securities legislation. Forward-looking information 
includes, but is not limited to, statements about strategic plans, including 
the closing of the acquisition of the Royalty, a going public transaction 
involving Premier Royalty, Premier issuing the bridge loan to Premier Royalty 
and future acquisitions of high quality cash flowing royalty assets into 
Premier Royalty. Forward-looking information is necessarily based upon a 
number of estimates and assumptions that, while considered reasonable, are 
subject to known and unknown risks, uncertainties, and other factors which may 
cause the actual results and future events to differ materially from those 
expressed or implied by such forward-looking information, including the risks 
identified in Premier's annual information form under the heading "Risk 
Factors". There can be no assurance that such information will prove to be 
accurate, as actual results and future events could differ materially from 
those anticipated in such information. Accordingly, readers should not place 
undue reliance on forward-looking information. All forward-looking information 
contained in this press release is given as of the date hereof and is based 
upon the opinions and estimates of management and information available to 
management as at the date hereof. Premier disclaims any intention or 
obligation to update or revise any forward-looking information, whether as a 
result of new information, future events or otherwise, except as required by 
law. 
Ewan Downie, President & CEO Premier Gold Mines Limited 
Abraham Drost, P.Geo., Chairman Premier Royalty Corporation 
Phone: 807-346-1390 Fax: 807-346-0100 e-mail:info@premiergoldmines.com Web 
Site:www.premiergoldmines.com 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/May2012/24/c2270.html 
CO: Premier Gold Mines Limited
ST: Ontario
NI: MNG FIN ORDER  
-0- May/24/2012 16:04 GMT
 
 
Press spacebar to pause and continue. Press esc to stop.